What is a purchase charge on a gift card?

What is a purchase charge on a gift card?

  • I recently received an American Express $100 gift card from a friend. So I noticed that on the letter the gift card came with, it stated that it has a $3.95 Purchase Charge. Does this mean that every purchase I make, it will deduct an extra $3.95 from my balance? (e.g. I buy a book for $10, does the purchase charge take away an extra $3.95, making it a total of $13.95?) If I am incorrect then what is a purchase charge? Please be specific!

  • Answer:

    Its a service fee, this is how they make their money. If they did not charge anything additional, they would be essentially handing out a bunch of free plastic cards and losing a bunch of money.

Matthew at Yahoo! Answers Visit the source

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yes they are sucker cards. you loose 3.95 every time you use and the merchant pays 5% of the purchase as well. Make one purchase and ditch the POS card

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